Most land contracts are serviced illegally and most people do not know it. The Federal Dodd Frank law restricts the servicing of land contracts to 5 per individual. This is only allowed if the Land Contract or deed holder is an individual. If the holder is an LLC or other entity than they cannot be serviced by an individual. The state of Michigan is even more restrictive, the law in Michigan defines any owner financed sale as a mortgage and is therefore governed by the mortgage laws, including servicing.
In addition to just collecting monthly payments, the person originating the land contract must be able to verify that the purchaser is qualified to fulfill the contract and provide some underwriting proof. They must also provide an annual escrow audit report to the purchaser and a 1099-INT for interest paid. Even through there has been very little enforcement of these laws, a purchaser can file a case at any time against an illegal contract holder and possibly receive some compensation. The defendant in the case could also face fines and is responsible for all legal costs incurred by both sides of the suite.